By Nishant Kumar, CEO, EarthyTweens
The garment sector learned from FY23 that the “survival of the fittest” involves more than just making quick adjustments; it also entails future-proofing operations and being ready for any situation. Following a weak wedding season and unusually warm winters in 2023, the apparel market declined. However, the sector is preparing for a possible rebound in demand in the upcoming quarters.
The government’s release of private final consumer expenditure statistics indicates that the garment and footwear industry experienced an 8.9% decline in FY23 following a notable increase of 28.6% in FY22. In addition, a postponed winter in December resulted in an accumulation of inventory for apparel companies. Despite these difficulties, there was still hope because retail sales had increased somewhat in several of the months. Retail sales increased by 7% in October and November 2023 over the same period the previous year, and then by 5% in January 2024.
But as clothing retailers look to 2024, they will face a variety of opportunities as well as obstacles. So, for clothing shops to keep ahead of the curve, they must comprehend the major trends. The emphasis on customization, sustainability, digital experiences like metaverse interactions, and the significance of adjusting to changing customer expectations are among the major trends. At the top of the list and expected to be one of the biggest themes in the clothing business in 2024 is sustainability. McKinsey’s ‘The State of Fashion’ report states that changing consumer preferences are something the business should be prepared for. Environmentally friendly techniques, transparent supply chains, and commodities obtained ethically are becoming more and more important to consumers.
For apparel retailers, flexibility and agility remain paramount. This change in consumer preferences compels apparel retailers to rethink their production process, embrace circularity, and explore innovative eco-friendly alternatives. To achieve these sustainability trends, the integration of technology balances between meeting consumer demands and reducing environmental impact, thus maintaining sustainability.
Furthermore, customization is another pivotal trend in the apparel industry. Various discerning consumers desire personalized experiences and unique products. Retailers that bring forth customizable options through made-to-order services or customized recommendations foster stronger consumer loyalty and are well-positioned to capture a niche market segment.
Meanwhile, the digital world offers a myriad of opportunities for apparel retailers to engage consumers in new and innovative ways. Integrating digital experiences, like immersive metaverse interactions, provides a more extensive avenue for apparel retailers to engage with consumers innovatively. Technologies like virtual reality (VR) and augmented reality (AR) can help apparel retailers to offer immersive shopping experiences. This integration allows consumers to try on clothing virtually, explore curated collections, and interact with brand ambassadors in a virtual space.
Thus, by acknowledging the evolving consumer preferences and market dynamics, apparel retailers can position themselves for success in the year ahead. By embracing these trends, apparel retailers can emerge more substantial and resilient in adversity.
